BT 2007 Annual Report Download - page 134

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33. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT continued
The maturity profile of interest bearing financial assets based on contractual repricing dates is less than one year. The floating rate
financial assets bear interest rate in their respective currencies, fixed in advance for periods ranging from one day to one year by
reference to LIBOR quoted rates.
Additional financial instrument disclosures required under UK GAAP for the 2005 financial year
The following information is provided in accordance with the requirements of FRS 13 – ‘Derivatives and other financial instruments:
disclosures’. The financial information excludes all of the group’s short-term receivables and payables.
Financial assets held for trading
2005
£m
Net gain included in profit and loss account 18
The net gain was derived from government bonds, commercial paper and similar debt instruments. The average fair value of financial
assets held during the year ended 31 March 2005 did not differ materially from the year end position.
Hedges
Gains and losses on instruments used for hedging are not recognised until the exposure that is being hedged is itself recognised.
Unrecognised and deferred gains and losses on instruments used for hedging and those recognised in the year ended 31 March
2005 are as follows:
2005
Gains Losses
£m £m
Gains and losses:
recognised in the year but arising in previous yearsa124 59
unrecognised at the balance sheet date 47 799
carried forward in the year end balance sheet, pending recognition in the profit and loss accounta545 165
expected to be recognised in the following year:
unrecognised at balance sheet date 36 51
carried forward in the year end balance sheet, pending recognition in the profit and loss accounta136 39
aExcluding gains and losses on hedges accounted for by adjusting the carrying amount of a fixed asset.
34. POST BALANCE SHEET EVENTS
In April 2007, we announced a new structure that will deliver faster, more resilient and cost effective services to customers wherever
they are. With effect from 1 July 2007, BT Design will be responsible for the design and development of the platforms, systems and
processes, which will support our services; BT Operate will be responsible for their deployment and operation. Around 20,000
employees – from design, operations, IT and networks – will move into these new units. We estimate that the reorganisation and
transformation activities will result in restructuring costs of around £450 million which is expected to generate a pay back within
two to three years. These activities will include developing new processes and systems, re-skilling and leaver costs which will be
accommodated within existing policies and by voluntary means. We expect the majority of these costs to be incurred in the 2008
financial year and to be classified as a specific item in our 2008 results.
BT Group plc Annual Report & Form 20-F 133
Financial statements